Boost Your Finances With Cash-Back Credit Cards

Boost Your Finances With Cash-Back Credit Cards
  • Opening Intro -

    Some personal finance gurus suggest that you should cut up your credit cards, and use cash for every purchase.

    Unfortunately, people who follow this advice are leaving cash on the table!


For responsible credit card users, it actually pays to use a credit card whenever possible.

How it works

Imagine two individuals who make the same purchases every month. One month, John buys $1000 worth of groceries, gas and other purchases. He pays cash for everything, and owes nothing at the end of the month.

Steve also spends $1000 on necessities that month, but he places all his purchases on his credit card. When his statement comes, Steve is careful to pay his entire bill to avoid any interest payments. But because he has a credit card that pays him 1.5% cash back on every purchase, Steve now has a statement credit of $15. Because of this, when Steve pays his bill, it only costs him $985.

Small amounts add up

While $15 may not seem like a large amount, that is the amount Steve earned in a single month. If he spends $1000 every month, that is $180 cash back earned every year. In ten years, Steve would have received $1800, and the only thing he had to do to earn it was use his credit card.

The key to making these cards work for you is to use them for every purchase. Large purchases like vacations, furniture or course fees make the cash back add up even more quickly. Another thing to keep in mind is that because the money you receive is a statement credit or a rebate, there is no need to pay tax on it.

Beware of fees

While cash back cards are a great way to generate some extra money, be aware that some of the premium cards can carry hefty annual fees. Some cards will waive the fee in the first year to get you using the card, hoping that you will forget to cancel it before the fee is charged the next year.

If you are considering a cash-back card, be sure to take the time to review your usual spending. If the cash back earned is not significantly higher than the annual fee, then avoid the card. Cards are available at many levels, so a card with no fee might offer a lower cash back rate, but be more appropriate for an individual with lower spending rates. The important thing is to carefully choose the card that will work best in your circumstances.

Finally, don’t forget that the most important thing when using a credit card is to ALWAYS pay the bill in full every month. Keep a budget so that you don’t spend more on the card than you can afford to pay, or the interest and fees will quickly outweigh any benefit you receive from the cash back rewards.

If you know someone who could use a little extra cash every month and is responsible with credit cards, then let them know about cash back credit cards by sharing this post!


end of post idea


Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.

facebook linkedin pinterest

Amazon Affiliate Disclosure: is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to The commission earnings are used to defray our cost of operation.

View our FTC Disclosure for other affiliate information.

Categories: Credit Cards

About Author